€51k deposits put homes out of reach of workers
Published 07/03/2016 | 02:30
Cash-strapped first-time buyers are saving more than €50,000 for a deposit before they can take out a mortgage.
Stark new figures show the value of the average deposit has risen by 38pc in a year, from €38,000 to an average of €51,000 for Dublin buyers.
The banking data, uncovered by the Irish Independent, reveal that deposits of €20,000 were used outside Dublin by the end of 2015, up from €16,000 in 2014.
Experts said this meant qualifying for a mortgage was now beyond ordinary workers.
Mortgage broker Karl Deeter said: "This is the price of protecting banks because for a person looking to buy a home, requiring another €20,000 means only two things: you stay a renter or you ask a preferably rich mum or dad for the money."
Meanwhile, a top developer has warned the housing shortage can't be tackled until issues surrounding construction costs outside Dublin are addressed.
Owen O'Callaghan claims that builders face losing up to €20,000 on every estate home sold outside the capital.